Most Americans have financial regrets because it’s nearly impossible to go through life without making at least one poor financial decision. Bankrate surveyed men and women ages 18 to 77 and found that the most common financial regret was delaying saving towards retirement. 34% of baby boomers and 26% of Gen Xers regretted waiting too long to begin retirement planning, while only 11% of millennials and 5% of Gen Zers felt the same.
It’s no surprise the 18–26-year-old group had very few concerns over retirement savings, or lack thereof, but many did share a regret of not having an emergency fund. Because most young working adults have too much credit card debt and large student loan balances, they struggle to make ends meet and don’t have extra money to put into an emergency fund account. Funding an emergency account became a high priority for most Americans since the pandemic, more than 50%. And saving money only takes a little strategy and discipline.
To start an emergency fund account, simply subtract your basic living expenses from your pay after taxes. What remains is your discretionary fund. If you bring home $3150 each month after taxes and pay $2075 a month for housing, utilities, food, credit cards, etc., you’ll have $1075 to spend and save. Decide where you can reduce non-essential spending so you can prioritize saving for emergencies and towards retirement.
To begin saving towards retirement, contact Alloy Wealth Management to speak with a financial expert who can explain your various retirement savings options. A custom retirement plan will be based on your current age, the age when you’d like to retire, your budget, and your risk tolerance. No two people are alike, and neither are retirement plans or investment portfolios, but all Alloy Wealth clients have one thing in common- they’re tax efficient. Call 800-689-3935 to speak with one of our team members.